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Problem D. The following statement of nancial position were prepared for HI] Corp. and HEP Co. on Ianuary 1, 20 19, just before they entered

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Problem D. The following statement of nancial position were prepared for HI] Corp. and HEP Co. on Ianuary 1, 20 19, just before they entered into a business combination. I'll] Corp. NDP Co. Cash P2 10,000 P 5,000 Accounts receivable 25,000 20,0011 Merchandise Inventory 200,000 50,000 Building and equipment 400,000 100,000 Accumulated depreciation [100,000] {25,000} Goodwill 50,000 TDIHJ 55915 w M Accounts payable P12 5,000 P 20,000 Bonds payable 200,000 30,000 0rdinary shares, P30 par value 210,000 Dril'ji' shares, P20 par value 50,000 Additional paidin capital 50,000 10,000 Retained earnings 200,000 40,000 Total liabilities and Stodcholder's equity w M 011 that date, the fair market value of NDP's inventions and building and equipment were P231000 and P1211000 respectively, while bonds payable has a fair value of P421100. The fair market values of all other assets and liabilities of NDP {except for goodwill} were equal to their book values. HI] Corp. acquired the net assets of NDP Co. by issuing 2,500 shares of its P30 par value common stock [current fair value P315 per share] and purchase price in cash mounting to P12,000. Contingent consideration that is detertninable {probable and reasonably estimated} amount to P1000. Additional cash payments made by I'll] Corp. in completing the acquisition were: Legal fees for contract business combination, P5,000 ; Accounting and legal fees for SEE registration, P11,000: Printing costs of stock certicates, P,000; Finder's fee, P1000; Indirect cost, P5,000. 1. As a result of the business combination, the amount of total assets and total liabilities, respectively, in the books of the surviving company. 2. As a result of the business combination, the amount of common stock, additional paid-in capital and retained earnings, respectively, in the books of the surviving company

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